Of course, any attempt to buy an old-fashioned life insurance policy for your Aunt Minnie that you have already approved is a fraud. While life insurance is often considered a valuable asset, many people are primarily concerned about the cost of a policy. It is legal to back a life insurance policy up to 6 months to help you get the lowest rate allowed for that age. Although it is still considered 35 until next year, an insurance company will downgrade it as 36 starting June 2.According to the insurance company, it is technically a year older, so its rates will be adjusted accordingly; however, if you go back three months to start on May 1, your premiums will be set at the lowest rate.
That would have the effect of turning upside down the risk-assessment-based business model of the auto insurance industry. A final expense life insurance policy may be your best option at age 70, especially if you have previous health problems. Therefore, if you have crossed your half-birthday limit, you could put your insurance start date before that day, so you are considered a year younger. The insurer will use your actual age or the age you are closest to based on the date of birth you are closest to.
State laws differ in their policies on overdue health insurance policies, so you’ll need to check with your state’s insurance commissioner. Backdating auto insurance policies is illegal and something that no reputable insurance company or agent would ever do. Fortunately, your insurer will probably offer backdated insurance the opportunity to go back in time up to six months and get the best premium available to you. Heather Petty is a personal finance writer at Finder specializing in mortgage lending, banking and insurance.
Since underwriting life insurance is based on assessing risk factors, companies will analyze the details, no matter how insignificant they seem. For example, if you take out life insurance before age 40, your premiums are lower than after you turn 40. Yes, reversing a life insurance policy is perfectly legal as long as the person you are creating the policy for is still alive.